Humans and nonhuman animals must make decisions about unknown features of their world under constraints of limited time, knowledge, and computational capacities. Bounded rationality is the key to understanding how people make decisions using simple heuristics (step-by-step rules) that function well under the constraints of limited search, knowledge, and time. Just as a mechanic will pull out specific wrenches, pliers, and spark-plug gap gauges to maintain an engine rather than just hit everything with a hammer, different domains of thought require different specialized tools. The notion of a toolbox full of unique single-function devices lacks the beauty of Leibniz's dream of a single all-purpose inferential power tool. Instead, it evokes the abilities of a craftsman, who can provide serviceable solutions to almost any problem with just what is at hand.

Key References

Brandstätter, E., Gigerenzer, G., & Hertwig, R. (2006). The priority heuristic: Making choices without tradeoffs. Psychological Review, 113, 409-432.

Gaissmaier, W.,  Schooler, L. J., & Rieskamp, J. (2006). Simple predictions fueled by capacity limitations: When are they successful? Journal of Experimental Psychology: Learning, Memory, and Cognition, 32, 966-982.